Joseph Martin (4:11)

Interesting. That's a fascinating situation because you're dealing with a divorce, but you're also coming into massive wealth at the same time.

Yosef Martin (4:16)

Yes. I mean, the separation was going on before I sold the business. And my ex wife is an amazing person. So there was nothing better than having her with me understanding what's going on. And she was the only person that knew outside of the business, people that were in the loop of the exit. She was the only one that I was able to tell. So while we're breaking up, there was no one else I can talk to. So I was telling her we're going to have an exit. And I actually didn't tell her what we're actually going to sell for.

Joseph Martin (4:48)

She might have changed her mind.

Yosef Martin (4:49)

No, I was. No, no, no, no. I was always thinking, it's half and half. I mean, we build stuff together. It's. It's. But I wanted to. So what I did was I was telling her what we're going to get, like, $10 million. And she was like, wow, that's amazing. I didn't tell her. Only at the end, I told her, you know, we're going to sell this. And she's like, yeah, no, it's. It takes eight months. So you just talk about a little bit once. Then I said, all right, you know how much you're really going to sell the company for? And she's like, yeah, 10 million. I said, nah, nah, it's more. And then when she heard it, she's like, what? Oh, my God. What does it mean? It was hilarious. And the thing is, while we're breaking up, we're still going through this. It was exciting.

Joseph Martin (5:25)

Yeah. That is interesting. So six months. What was the next thing from there?

Yosef Martin (5:30)

So, you know, at first I was just enjoying the quiet and all that, but then I decided that I wanted to build financial skills. All my entrepreneurial career, I was so focused on what I do. I did not do real estate. I didn't do crypto. I didn't do anything. And why should I? There are plenty of ways to make money. There are plenty of ways to grow re and grow yourself as a person.

Masterclass (5:56)

If you're like me, you're looking for an edge for sports betting. So when I heard Masterclass had a new class on beating the odds, taught by the pros who have made millions, I had to check it out. With Masterclass, you can learn from the best to become your best. Masterclass is the only streaming platform where you can learn and grow with over 200 of the world's best for just $10 a month. An annual membership with Masterclass gets you unlimited access to every instructor. And you can access Masterclass on your phone, computer, smart tv, or even in audio mode. Novice betters are at a huge disadvantage, with most losing early and fast. Before, the knowledge needed to level up was hard to come by. Now there's Masterclass, and the classes really make a difference. 88% of members feel that Masterclass has made a positive impact on their lives. I use it and you should too. Plus, every new membership comes with a 30 day money back guarantee. So don't wait another moment to start your learning journey with Masterclass. And Masterclass always has great offers during the holidays, sometimes up to as much as 50% off. Head over to masterclass.com bluewire for their current offer. That's up to 50% off@masterclass.com bluewire that's masterclass.com bluewire and remember, all sports betting involves risk and you're responsible for complying with all sports betting laws in your jurisdiction.

Sponsor (7:20)

This episode is brought to you by Atlassian. Atlassian makes the team collaboration software that powers enterprise businesses around the world, including over 80% of the Fortune 500. With Atlassian's AI powered software like Jira, Confluence and Loom, you'll have more time to do the work that matters. In fact, Atlassian customers experience a 25% reduction in project duration per year. Unleash the potential of your team@atlassian.com Atlassian.

Yosef Martin (7:49)

You can just jump into any trend that goes on. So I was doing one thing now I figure let me obtain financial skills and understand real estate a little bit so when I build my next business I don't have to learn. All I have to do is improve my skills or continue from there. Because there's a big difference between going into a business, learning all the politics from the beginning when you're busy and you have already business and it's just your mind is not there. So I figured this is the time to do it, otherwise I'll never be able to do it. I need to know how to manage my money. So I sat down with a friend of mine that he's a day trader and he sat down with me for two hours and he showed me his strategy, how he does trading. I started doing some options trading for fun and I started investing in some real estate and then just looking at the market, you know, you give the money to Goldman Sachs and Morgan Stanley, you tell them to manage your money. And I remember as I played with the market I kind of noticed something interesting at the end of 2021 where it looked to me as if the market is going to crash. And I had a call with my Goldman Sachs advisor and I told her let me ask you a question, do you have any KPIs for a market decline where we're going to get out of the bull market that we've been here? It was very bullish. Do you know when so we can get out and Come back in. She said we would never get out of the market. The stocks would always stay there. She said yeah, but it's, it's not what I want to do. I don't understand the market. If you cry, I want to get out. And then. And you know, she said no over 30 years. And so. And yeah, but you have lost decades. If you actually look at the chart, some people has put their money in at the peak of a bullish run and they wouldn't see the same dollar for 10, 12 years later. And I mean if you look at the dot com people that came at the peak didn't see their money until March 2013. Wait 13 years. I don't want to be, I mean like I'm not looking to be 70 to see the money back. So I just pulled all my money out of the market at the end of 2021 and then the whole market crashed.

Joseph Martin (9:57)

Wow, you timed the well, yeah.

Yosef Martin (9:59)

So it crashed and then from there on what happened? I decided I don't want to do any more. I did a lot of options trading. I was very good at that. But then I decided I'm not doing any of this. I need to build some tools. I spoke to a friend of mine, he's a data scientist for a big cell phone company. He's my best friend and he's electrical engineer by trade. And he said I can build a trading algorithm that would beat any day trader. You just give me the algorithm. So we decided to go ahead and build something like that. So that was the first company I built after that it's a trading algorithm and, and so on. So we have that and, and then eventually I went through other journeys in my own life.

Joseph Martin (10:42)

Got it. So the algorithm uses AI to trade.

Yosef Martin (10:44)

So this is the beauty of it. The AI is a, is a term that's very specific. Usually there is a reinforcement learning agent tools that would go and do it. It was still not proven to work for the financial market. You have other algorithms that gives you certain intelligent to improve parameters and they were technically proven to work. So if you look at large conglomerates that are or quant hedge funds, you look at Renaissance technology that are known and they were the first ones with Jim Simon. They're known to actually use a genetic algorithm and so on. So you have certain algorithms that do known already to be very effective for the financial market. So we use something around that.

Joseph Martin (11:29)

Got it. So eventually they might replace these day traders down the road.

Yosef Martin (11:33)

Well, obviously, yeah. I mean the idea is that everything you're doing there Is a strategy. And you have to have a certain discipline. Ultimately, you have many ways to skin cut. If you want to turn profit. You can go with a Warren Buffett mindset where it says you invest in American business that happen to be public and you want to buy into that. Right, that's one. And then you have the more risky. More I would say, yeah, much more risky is going to be going in and out as a day trader. And if you already do it, it might be better if you'll have a tool doing it for you. It would always outbeat you. Just like playing chess against a computer.

Joseph Martin (12:09)

Right. So you're still actively chasing wealth. So is there a certain point for you or are you just going to keep going?

Yosef Martin (12:14)

You know, for me, I'm a simple guy. I don't buy expensive stuff. I don't care about any. Any expensive stuff. But I just like the game. It's a video game. And the money is a way to keep score. I'm repeating someone else's words, but that is exactly what it is. You want to feel that you're doing something right. If I'm going to go and tell you, look, the art, I would say the highest art for my entrepreneurial career was when I grossed 500 million in sales. Close to 500 million in sales. And I was doubling year over year. I was extremely profitable. Company was great and it was nice. It was. It was amazing. Okay. I have to tell you, I was just looking on ebay, where I go for all kinds of things I love. And there it was, that hologram trading card. One of the rarest, the last one I needed for my set.

Sponsor (13:00)

Shiny like the designer handbag of my dreams. One of a kind. Ebay had it. And now everyone's asking, ooh, where'd you get your windshield wipers?

Yosef Martin (13:09)

Ebay has all the parts that fit my car.

Sponsor (13:11)

No more annoying, just beautiful.

Yosef Martin (13:15)

Whatever you love, find it on eBay. EBay. Things people love. When you sell this, you enjoy the quietness. But then you don't have the same excitement of running a big business. But yet you have to start all over again. You have to be full again. You have to learn something that you have no clue. You cannot just take the skills that you had and think you can do the same. Because this is not 2018 anymore. This is not 2019. You have to get some new skills and use your old skills and build something new. The part of doing that is the challenging part where you think of yourself. When people go up on your shoulder and say, wow, you're amazing. You're not now, because it doesn't work. It. Whatever you do, you're building it right. You don't know if it's gonna work again, and you might fail. So you have to start from the beginning. So every time, you have to climb that mountain and roll that rock to the top of the mountain. That journey, even though it's. It's challenging, it's very rewarding. But you understand, because you've done those journeys before, that the view from the mountaintop is nothing like the ground floor. And in order for you, because you've had that perspective, you can comprehend what it takes. So you want to do it again, and you want to do it again, because the journey, as challenging as it is, it's a different mountain. It's a different mountain type. You don't go. You did Kilimanjaro. Now you want to go and do Mount Everest. Every time is a different challenge that you want to take on yourself because you enjoy that.

Joseph Martin (14:42)

Yeah.

Yosef Martin (14:42)

And business people are the same. Like mountain climbers. This is what we do.

Joseph Martin (14:47)

I love that mindset because a lot of people have success in one industry, and they think they can replicate it.

Yosef Martin (14:51)

But ultimately, notice what it is. It is less about the money because, yes, there's always perspective. I have friends that have way more wealth that I'll ever obtained. I mean, up until now, it's like, so it's nice. You know, it keeps. It keeps you grounded and humble. But if you're doing this for the money, you would have stopped early on. When you know it's just when is enough. Right? You say, okay, it was when you have $5 million in your bank account. It's like, okay, that's it. I'm good now. Success in my family and so on. When is it? And every time you have a higher challenge, you have to break in through a bigger wall. Every time you have to climb a bigger wall, and there is a barrier that you haven't experienced it every time until you get to a point that the barriers account out, and most of them were gone. And you're doing a couple hundred millions. You have a big, massive company. But most companies stop prior to that because all the barriers to grow your business. So it was really not about the money. If you think about it, if you saw what if it was about the money, then I would stop there. I'm okay. Good.

Joseph Martin (15:48)

Right?

Yosef Martin (15:49)

You just enjoy the competition. You see someone else does a little bit better, and you want to do better than what you did yesterday.

Joseph Martin (15:56)

Absolutely. Were your parents super Successful?

Yosef Martin (15:59)

No, I mean, they're great parents. My. Well, my dad, I'm not in touch with him. So I'll talk about my mom. My mom didn't give me any wealth or anything like that at all. She was a hairdresser. And later on she came in here, she actually worked as a living au pair. She was taking care of all people. But I was blessed to get great values and warm, loving family. And I think that's all what we need. And ultimately I've seen my mom always working hard, but making money. I mean, you learn that hairdresser, if she's good or he's good, they'll always make a living. No matter where they go. You drop them any place on earth, they'll figure it out. And people want their hair to look nice. Especially women are very specific and they'll marry their hairdresser. So she was always doing good, but to a point, because she trade her time for money.

Joseph Martin (16:46)

Right, so what was that influence for you on the entrepreneurial side of things?

Yosef Martin (16:50)

So I noticed actually from other people as a kid were family members and so on that are older, that are doing amazing in whatever they do, but they always felt economically. So think of someone that decided to go in, you know, really good singer or so on. But there's no money angle for any of this. There's no opportunity. So they always struggle. And whatever they do, you find a genius in them. But you say, why? Why can't you put that genius towards building wealth and then do it for hobby or whatever it is? But why don't you make that your hobby? And I've seen this as a kid now, I never really processed that too much, but as I grew, I told myself I had hobbies. And my hobbies were I like dancing salsa, I like doing a bunch of stuff. And. But I said, okay, so, so if I'll then salsa, I'm never gonna be rich from that, or at least stable financially. Right. Why not focus on something that can actually make me money? Let me put all my time and energy only on that. And that's how it was when I was early 20s, after the military and eventually putting your mind into this, you know, you find the first nature for your first opportunity, which takes time. The biggest part was, what, what am I going to do? How do you make money? You walk down the street, you have nothing. You don't have a podcast right now, you don't have any, any business. I mean, I see over here you have like, you don't have any of that, right? You work Your student like me, I was international student. What do you do? Right. So you said, well, you know, buying, selling might work. Okay, what do I buy? Where do I buy? You go to any wholesaler, you find out that whatever they have, you can buy it cheaper online.

Joseph Martin (18:32)

Right?

Yosef Martin (18:33)

So you're too low in the food chain. And you said, so how do people obtain any of this? Like how does it start? So one day I met someone that told me, you can make money without having any money. I said, that's great because I don't have any money. And but how do I get people to know about the website of whatever I sell? Said search engine optimization. That was in 2003. And that's when I obtained my first skill, SEO. Search Engine Optimization. That was my first skill. I was able to build awareness for free. Right? And then whatever you stick on it works. So if the business term location, location, location back then was a thing, today is marketing. Marketing, marketing, right. You can get awareness better, faster and cheaper than someone else. And from there on you take off. There's a lot more pieces into that puzzle. But that was my first piece of the puzzle. It allowed me to say, okay, from here I know how to connect the rest of the puzzle and to build something.

Joseph Martin (19:27)

Yeah, very pleasure time. Because SEO was big back then.

Yosef Martin (19:30)

Wow. It was different by far than it's nothing like it was today. So I had a liquidation company I started with a couple hundred bucks. I was international student and I was flipping merchandise, track loads from Walmart, excess inventory from Walmart, CVS and so on. And I remember that I built a website, I had to learn how to code and then I had to learn SEO. And once you start hitting terms like liquidators, liquidation, and you're on the top, you're in the first position in Google. And back then pre 2009, Google didn't have geo targeted results, definitely not personalized results based on your searches. If you search liquidators and I'm number one globally, you go to Japan, you go to Africa, I am there, the number one.

Joseph Martin (20:11)

Wow.

Yosef Martin (20:12)

So you need to understand the amount of traffic that comes into your site. Suddenly you have thousands of people coming to your liquidation website. The phone is ringing off the hook. Wow. And you're in school, you have to go and you have a class now and doesn't stop ringing. So it always my beginning days and suddenly it works. So then let me throw some Google AdSense. People click on a Google AdSense and you have thousands of dollars every month. Now that pays off, your out of state tuition starts falling into place. And you say, well, they'll call you genius, but all you have to do is obtain a skill of marketing.

Joseph Martin (20:44)

Right.

Yosef Martin (20:44)

You're not really a genius. You just happen to understand something in marketing and you do it better than someone else.

Joseph Martin (20:49)

Yeah.

Yosef Martin (20:49)

And then eventually you learn how to make it an actual business. You. You know that this is an ingredient in a bigger recipe and you have to learn how to cook it and do it right.

Joseph Martin (20:58)

Yeah. It reminds me of Facebook ads, Like eight years ago, they were so cheap.

Yosef Martin (21:01)

Yeah.

Joseph Martin (21:02)

Oh, my gosh. But now they're so expensive.

Yosef Martin (21:04)

Yeah. If you think about Facebook ads, I remember when it just started, it was kind of challenging to. I didn't do ads for a while, but I had friends that that was their space. Everyone was doing marketing differently. And the. The story was, you know, this guy was talking about how he made some ads. He wasn't telling me it's just a video that went online. The guy named Jeremy Schumacher, and he was talking to a Facebook, I guess, executive, and he told him, you know, I went to a dentist. He asked me, what do you do? I told him, Internet marketing. He said, can you market my business? So he did some campaign for that, for that gentleman, for that dentist. And he said, we did two different ads, AB testing. And that was early on. So no one knew how to even do it. It was very complicated to understand how to drop an ad over there. So he went and he did one with a coat, a lady with a coat like a doctor and an R1 white teeth. And he said it was ringing off the hook. It was. Dirk targeted this to Lincoln, Nebraska, and the doctor had to go and hire 20 girl, a bunch of girls to go and pick up the phone. And that was in Lincoln, Nebraska. So think about it. It was just random. That's how easy it was. It was money on the floor that you can pick up and walk away. So if you look at marketing, every time there is a new platform or every time there's a new feature in a platform, most marketers that are good, they understand that you have to adapt to it quickly because in many cases, the algorithm is. If you have a new platform, say TikTok 2020 or 2018, it was much easier to go viral because the supply and demand between content creators and content seekers is not balanced. Tons of people are seeking content, not allowed create the content yet. So then whoever drops anything, the probability to go viral is much higher. As it goes on and on and on, you have more and more content creators, and now it's just a Matter of luck by the end of the day. So, by the way, I think LinkedIn is still there. You have 2% content creators. That's LinkedIn. Yeah, that's really small. So you can. It was always something I was chasing until I sold the business. I run $500 million business, but I always looked at those little details because that's what counts. That's what keeps you relevant, and that's how you stay cool. So when TikTok came along, we sat down, I took anyone, I went to everybody in company and said, who knows TikTok? And they gave me a bunch of them, raised their hands from customer service, from. It doesn't have to be for marketing. Okay, let's go. We're gonna grab dinner or lunch somewhere. And we all sat down, talked about this, and we did a focus group just for TikTok. Every day, sitting about, just TikTok and all users. But you kind of like explain to them how the business needs to look at TikTok. And we went very quickly, viral. We kept going viral all the time, and we build our followers very quickly.

Joseph Martin (23:55)

And now TikTok shop is killing it, right?

Yosef Martin (23:57)

Yeah, they're killing it.

Joseph Martin (23:58)

TikTok shop people took advantage of that. When I was running YouTube ads on the podcast last year, they were crushing it, and now they're double, triple the price.

Yosef Martin (24:06)

You're talking the YouTube ads?

Joseph Martin (24:08)

Yeah, yeah.

Yosef Martin (24:09)

YouTube ads can be very effective, but for few people, the monetization of that is challenging. But at the same time, if you have a way to go viral in general just doesn't have organic content, even your ads will do better. Everything goes better.

Joseph Martin (24:27)

Right?

Yosef Martin (24:27)

It just. The algorithm on both ends is looking for who's. Who needs to see this ad. So going viral is always easier. Everything makes it easier. Mr.

Joseph Martin (24:36)

Beast's content strategy got leaked last week. I was studying that. And watch time is a really important metric.

Yosef Martin (24:42)

Oh, absolutely. YouTube, absolutely. So you know what you do for watch time? I guess the. The easiest way to say this, in 2014, I noticed an influencer named Kathleen Light. And I. I knew that she's going to go big, and every day she would grow 3,000 followers. That was in 2014. I said, but why, why am I looking at her video all the way through? Yes. I mean, she's charismatic and all, and there are lots of charismatic people. And then I noticed it's her editing. She would go and do her editing different than the most. It was very basic editing, but every two seconds or so there was a cut in her editing. If you see that which keeps you a little. It keeps you stimulate. And you don't understand that because it wasn't crazy things, but it became. I mean, if you think about our generation now. I know about you, but I can barely watch a movie now.

Joseph Martin (25:31)

I can.

Yosef Martin (25:32)

I'm not simulating enough for movies. I need something short form content. So imagine the kids. So yeah, the editing needs to be good enough to stimulate you to stay on tack. There is one particular person, if you look at Antonio Garza, it's in the beauty industry, which that person took it all the way to a different level where it's zoom in, out, in, out, sideways. So it's for little kids that have a whole add that that's what they're gonna go and watch.

Joseph Martin (25:59)

Right.

Yosef Martin (25:59)

But Antonio Garza blew up because of that.

Joseph Martin (26:02)

So that's smart.

Yosef Martin (26:02)

Yeah. I need to tell my editors that stimulation. You have to go and stimulate people better than someone else.

Joseph Martin (26:08)

You have to. These days. Yeah. I watch all my YouTube at 2X, all my podcasts at 2X, even movies on Netflix. You could change the speed now. So I do 1.5.

Yosef Martin (26:15)

You can do that faster?

Joseph Martin (26:17)

Yeah.

Yosef Martin (26:17)

Oh, okay.

Joseph Martin (26:18)

So 1x is too slow for me, man. Interesting. Way too slow. Yeah. Especially audio books because they're too slow.

Yosef Martin (26:26)

That's a good way. I actually do that when I'm listening to messages on WhatsApp.

Joseph Martin (26:32)

And yeah, yeah, WhatsApp.

Yosef Martin (26:33)

Just easier. 2x makes it easier because I have the patient when someone drops a voice. Why couldn't you just write it? I have to listen. Yeah.

Joseph Martin (26:41)

Those people are annoying, man. Those two minute voice messages. Yeah, dude, it's been cool. Are you buying companies right now still?

Yosef Martin (26:49)

I invest, but not much. I mean, I'm not an investor per se, but what I decided I'm going to do is I'll invest alongside professional investors.

Joseph Martin (27:01)

Smart.

Yosef Martin (27:01)

That have great success. And you know, they might say, okay, you know what, we kind of want you to be on the board. Or they're just friends and they can say, well, you can come in, same valuation, same everything, same terms, the cost, but I'll let them do the due diligence. And it's actually something very common. Or on investors where I've seen this, I mean, I learned a lot through selling the business. I mean, selling the business is an experience that teaches you about money. So you first of all understand how private equity works and you understand why it's very hard to lose in a private equity game. Because one thing is the private equity companies that are coming to investors, it's very Common to say we have a lead investor. So if there's a lead investor, he does the heavy lifting. They do all the due diligence can be pricey. Actually pretty pricey. And it's time consuming. And then they decide if to buy another company. Right through that process you can go and say, okay, you know what, let me look at your record. Okay. You've done pretty good in that space. Say a restaurant. You guys know everything about restaurants. You decide to invest in this one, I'll invest, but not just on one. I want to do it on the next five restaurants because the probabilities usually 1 to 10 will fail. So usually do it good. So let me come in with them. That's one. And that was my best investment. Everything else I played with no money. I didn't do good and. But I barely threw money into small startups.

Joseph Martin (28:24)

Yeah, yeah, I've lost on pretty much all mine. I think I'm like over 8.

Yosef Martin (28:29)

What did you learn from that?

Joseph Martin (28:31)

Similar to you, I think because when you make money you kind of just want to spread it out. That's like your first reaction. But you don't do enough due diligence and you don't talk to the right people. So you're just like, yeah, I'll invest in that restaurant, that AI trader, whatever. And I got too excited, move too fast. I need to take more time and probably partner with the right people like you did.

Yosef Martin (28:48)

Yeah, I kind of learned that no matter who you want to invest in their businesses, no one is going to go and show you a chart that goes down. They're all going to show up to the right. Yeah, yeah. It's only going to be hunky dory over there. And so you know if, if you go through. So then you go and you show this to some friends that that's your job. An analyst in the private equity. And he said, yeah, I wouldn't touch it with a stick. What sounds so good? Everything. How can you come. And then he breaks it down right away. Because that's what they do every day.

Joseph Martin (29:17)

Yeah.

Yosef Martin (29:17)

So eventually I said, okay, I'm definitely not doing this by myself until I'm more trained. There's politic in every business that's no different than anything else.

Joseph Martin (29:25)

Yeah, I'm also pretty risky. So like I have financial advisors and they're happy with 8% a year, but to me that's, that's too low, you know, because I'm young.

Yosef Martin (29:33)

So you want to throw more than 8% to.

Joseph Martin (29:35)

I want to get like 15 to 20 honestly, to put in.

Yosef Martin (29:38)

Into. You're saying to invest in, like, make.

Joseph Martin (29:40)

15 to 20% on your money.

Yosef Martin (29:42)

Oh, I got you. Yeah.

Joseph Martin (29:43)

Because they're happy with making 8%, but that's pretty low, in my opinion.

Yosef Martin (29:47)

Well, no, I mean, I get that, but. Oh, well, I mean, we can talk about this later, but yeah, I don't want to say I'm not a financial. I'm an entrepreneur. I know I'm good in building businesses. So in terms of investing, maybe in 10 years, we'll sit down again. Your podcast is going to be bigger than Joe Rogan. Maybe. And then I'll tell you, well, here's my strategy, and that's how I work. Both. Both the cashew weights or something.

Joseph Martin (30:08)

You'll be a billionaire by then 10 years.

Yosef Martin (30:10)

Well, what's going to be worth what's a billion in 10 years then?

Joseph Martin (30:13)

Right?

Yosef Martin (30:13)

It'll be half a hundred million today.

Joseph Martin (30:15)

That's true.

Yosef Martin (30:16)

Because inflation. Right.

Joseph Martin (30:17)

Damn. Yeah. Because even being a millionaire today is not even impressive to me.

Yosef Martin (30:21)

Every second person called himself a billionaire now. It's just, it's. It's kind of scary where you tell yourself, well, wait a minute. If someone in the 80s sold the business for 100 million, I mean, yeah, I sold for 500 million. It's like, I don't, I mean, no, they made more. There's no way. Because, I mean, from the 80s, I, I cannot see how 500 in 2020 is worth the same or more than the 100 million buck then. I don't, I don't think so. I mean, look at, look at price of homes. Look at, look at the, the differences.

Joseph Martin (30:53)

Right? Yeah, so that's a good point.

Yosef Martin (30:55)

Yeah.

Joseph Martin (30:55)

Because people think like a million is a lot these days, but maybe it wasn't the 80s.

Yosef Martin (31:00)

Look, there are some things that are in our head, right? If you look at, if you ask yourself, why is it that people fail when they're building businesses and they want to scale their businesses? And there's the statistic that we pulled back then, that one out of ten companies will gross more than a million dollar a year. And then you said, okay, how many do 10 million a year? And about 10% of companies will do 10% of that will do. So one out of 100 companies will do about 10 million a year.

Joseph Martin (31:31)

Got it.

Yosef Martin (31:32)

But then here's where it gets tricky to make 100 million. And I'm giving you numbers that we pulled in 2018. One out of 35,000 companies. Wow. So you kind of need to get. So if you made 10 million, your probability is 1 to 350 to actually make it just impossible to get to that part. And we, we, we through that, we found that number when we surpassed 100 million. But where it gets trickier is now from about 100 or 200 million to get to a billion, it's 1 to 20. So you said, oh, wow. So the barriers were from 0 to 100 somewhere over there. And there's just a lot of barriers because you start with whatever is obvious. It's so easy to get to a million because everyone can come in and figure out something that can gross a million dollar. But then it gets a little trickier. One out of 10 will actually gross 10 for many reasons. But there's a big crash that falls there. By the way, when you say why is it that you still have about 20 from. I think it's 250 million to a billion. It's about one out of 20. He said, but why are they failing from there? And majority of them end up selling their businesses when they, when you get to from 100 to 50. So there's a dropout all the way to a billion. There's a big dropout because the founders leave and they're cashing out.

Joseph Martin (32:52)

Right?

Yosef Martin (32:53)

And usually 90% of acquisitions fail. And that's why you do not see. But the barriers to grow the business comes down early on. You get through this and then it gets easier because you have to reorg your company at least twice, right? You have to decide and then it starts with you. What do you do during the day? And most people, I would argue, fails CEOs because they decide that they no longer have to look at the little details as they scale the business and they feel, oh, I'm a CEO now, I shouldn't be dealing with this. However, you need to understand what is the steering wheel in the car that you're driving and time. Often they feel like everything else is important and their job is to monitor, monetize the entire company from above. And now you still have to hold the wheel. Otherwise you're going to start getting off road and you're going to have some choppy ride from there on. And that's what happened when you pull yourself out of the product or out of the service. If you don't pull yourself out of this, you understand what it is and you just need to identify what is the true steering wheel for my business. And I can never let that go. And you're going to have some pressure. Board members or other people would go and tell you, you're bigger, you're bigger than that now you're a CEO of whatever 200 million or 500 million business. You shouldn't be dealing with little TikTok stuff. Well sometimes that what makes you relevant cools and stay, stay on top.

Joseph Martin (34:13)

Right.

Yosef Martin (34:13)

You just need to understand what it is for. Every business is different. But there is. Every business would have that piece that the CEO should not let go even if someone manage that. But that's what keep you tuned to the market.

Joseph Martin (34:23)

You got to keep in tune with your customers too.

Yosef Martin (34:25)

Correct.

Joseph Martin (34:26)

Some. Some companies just stray too far away I think from their customer base.

Yosef Martin (34:30)

You can see, you can tell by looking at the day to day of the schedule, the day to day schedule of the CEO and the C levels. And you can see if it's a company that forgot where they came from. If all they do is strategy meetings, corporate meetings, follow up meetings, they forgot where they came from. Because if you take any engineer and you ask him do you want to be a manager? An engineer that does. AI will tell you I do not want to be a manager because once you pull me out of the day to day stuff I lose the edge because there's a lot of progress every day in that space. If you're making me a manager, I'm no longer touching it and I can never go back to it. There's a, there is a knowledge debt that I'm acquiring every day not being there. And I don't want to get out of this because it's hard to go in near impossible later on. So it's the same with, with CEO and sea levels where they forget where they come from. And eventually the sea levels, the VPs and above all the way to the CO they don't know how to do anything at that point. They used to. And then at the same time when someone wants to tell them you can't do it anymore, it doesn't work like that. It's very hard because it's hard to tell someone to do. It's hard. It's gonna be very hard to teach you something that you think you already know.

Joseph Martin (35:40)

Right.

Yosef Martin (35:40)

And that's where companies go today.

Joseph Martin (35:42)

Yeah. And I think 10 the mil to 100 mil, you really need to make some important hires. I think that's very. A lot of people struggle.

Yosef Martin (35:48)

This is exactly. Yeah, that's on point.

Joseph Martin (35:50)

So which ones from your memory were super important when you were scaling.

Yosef Martin (35:53)

You need to start hiring from the top. And you, I would always advise get someone that work for a company if you're at 50 million. And you need to get. Your vision is hundreds or billions. Get someone that worked for 50 to $100 million business and stay with them through a transformation in a key position to billions. That he saw the transformation from say 100 million or 50 million to a billion or 2 billion because he's seen the transformation. And that's going to help you because your, your job is to find someone that can build underneath you the organization properly. And that's one advice. The second advice, as soon as you hire them, if you feel it's not it, fire them quick. Your job is to fire them quicker than the competition would have fired them. It's not about how good you are in firing in hiring. It's also how good you are in firing.

Joseph Martin (36:46)

Right.

Yosef Martin (36:47)

So that's, that's the two things. First, get someone from the top, a coo, someone that was in a, in a at least a VP position in a billion dollar business but was working in the same company. And he saw the transformation from. Because it's not the same. Yeah, 50 million to a billion. So that, that's what I did eventually and it wasn't easy, but we had to kiss a lot of frogs. But I'm good in getting rid of them quick. And the ones that made the difference are some that came in with that skill set. And your job is to bring people that are better, at least as good or better than the current employees that you have. And eventually people on the bottom would either get better or they'll turn right. And now you have a better team.

Joseph Martin (37:30)

Yeah. Firing is tricky, especially when you develop personal relationships. So did you have friendships within the business?

Yosef Martin (37:35)

Look, of course, yes. But you know, it's a friendship around business. The beautiful part is after that, after we all exit, after we all left, many of us are still friends now. And now we can actually build true friendship.

Joseph Martin (37:50)

Right.

Yosef Martin (37:51)

It's, it's part of that.

Joseph Martin (37:53)

Yeah. So you just keep in mind it's mainly business first and then.

Yosef Martin (37:56)

Well, you know, there is something called chip popularity. If I'm your CEO and you're my vp, I'm not gonna go and talk to you about my new girlfriend. Like it's just not gonna happen. Yeah, every each his own. Right? But for me, it's all cool. We can talk, we can laugh a little bit, but you don't want to drag yourself into cheap popularity where, you know, because tomorrow I might have a problem with something you're doing and I have to talk to you seriously. I mean, I don't have a problem Anyway, even if we're laughing today, because it would never, I would never attack your character. I would, I would attack your action in the business. Right. So it would never be personal. Some people might take it personally, but they need to distinguish the two. But by the way, I want you to feel just as comfortable to attack my actions if you in the business, not my character, if I did poorly in something, because I need to hear why. I want you to tell me that. So there is no problem there. But friendship obviously can form. But it's going to be a different type of friendship than someone else that doesn't work for you or something like that. It's. It's going to be a lot of respect and so on. But I would always advise people, do not forget not to turn it into a cheap popularity. You don't want to be the fan boss or something. You can be a fun person. Everything else, but that's not what you're looking for. Yeah, you need to make sure that you're the guy that have proficiency in what you do and you're serious about. When it's business, you're serious. And outside of that, we can laugh a little bit.

Joseph Martin (39:14)

That's interesting. So you allow your coworkers to challenge you on some business ideas.

Yosef Martin (39:19)

I would fire you if you don't know.

Joseph Martin (39:20)

Really?

Yosef Martin (39:20)

Yeah. If you're just a yes man, you don't bring me leverage.

Joseph Martin (39:23)

Wow.

Yosef Martin (39:24)

I'm sorry. Like, my idea was that if I have an idea and the idea is wrong and you know it's wrong, and on the aftermath, you tell me, I knew it was wrong. Xyz, you're not attacking my character, you're just telling me why. Look, all. I'll give you a great example Motorola had. This is a great case study. I mean, I can tell you I wasted my time when I went to business school. But there's one good story I picked out of there. It's a case study that I learned about Motorola. I did not have to go to school for that. But here it is. In the 90s, satellite phones were the thing because there was no antennas all over the country. So very expensive phones, all the satellite phones. And there was a problem in the satellite phones where there was a slight delay while you were talking to someone. So this engineering Motorola found out that if you use a different frequency, you're not gonna have this delay. So went to Motorola, they built the plan, they said, well, we need to launch 53 new satellites to orbit Earth. And it would take us 10 years and $10 billion and they had this business plan that over six months they need to have at least 60,000 subscribers. And that would be the price to pay thousands of dollars every month, $50,000 for the phone. That was the prices back then. Ten years later when they finished, they had their satellite phone. But guess what? No one bought it. Because at that point regular phones were the thing. There were a bunch of antennas all over the country. In 2000, no one bought a satellite phone. Unless you work in military or Alaska or something like that. So they bankrupt within six months or a year. The whole business, $10 billion went to waste. Wow. The point is Motorola was the main builder for those antennas. They knew the projection many years out. They've seen the decrease the data around decrease in buying satellite phones was there. And you ask yourself how come it's not a government agency that you can blame the whole idiots. No, no. It's a private company for profit. Very successful. But yet no one likes change. Nobody likes to challenge anybody. A lot of politic. And here you go, you have a company that lost $10 billion which was painful. And again in 2000, $10 billion was. Who knows what it is today. Right. I don't even guess. I don't realize loss realize for today. So that was a story I would tell people in my company. I said we're not Motorola. If you feel there's a problem, let us know and we're okay stopping at any point, I'm okay losing. If it was a $10 billion budget and we lost a billion, but we at least saved the 9 billion, that's all I'm looking at, let me know. So if you come to my company, I'll tell you. Come in. We might work on a project last minute we'll decide to kill it. Don't be discouraged. And if you find there's a problem, I think that there is a red button and you press it and you just let me know. No one is ever going to be mad at you for that. If it was Sarah's project, she would never have a problem with you challenging. We in fact we want you to. We don't want to launch something that had no life, no. No reason to exist.

Joseph Martin (42:24)

I love it. Yeah, that probably helps you avoid some big losses.

Yosef Martin (42:26)

That mindset 100 you fail faster than anybody else and eventually you tell everybody. But all that wouldn't you know, I can go and tell you to tell us to stop but then I also still need to give you directions of what actually going to work for us. Right. I was selling monthly beauty subscription Box with five full size makeup items. And then when many companies did the same, there were hundreds of us. Only we were the only one that had an exit at the end, but it was us and Ipsy. We're the only one that made it to the end, right on the monthly beauty side. And you said, but why? I mean, we had Sephora competing with us, we had Macy's. Even Amazon was trying to come into it at one point. They all failed. And not to mention hundreds of just entrepreneurs like us. Now you ask yourself why and how is it that our decisions throughout the days were better than others and so on. And it's just one of those parts where you said, sometimes it just takes a group that's a little bit more focused and better to win. If I'm focused more than you, and I never forget what's important, what's urgent, I will win. So in order to do it, there was a part where I had about 30 employees. And I felt like I'm at. I was small, I was doing 10 million in sales at that time. And I felt like I'm a chicken with their head. Cut off every activation I had to be involved and it got to be challenging. So I had to hire more people. But even if I hire more people, I still have to manage them because. So someone told me, a friend of mine, she said, you need to write a goal, the company goal. And then you need to write for a couple strategies. That's how many, what are the main strategies? And I had to understand what is the strategy and what is a tactic. That simple question I couldn't answer clearly to myself. So what do you do? You Google that. So a strategy is a. Com is a common denominator for multiple tactics. Then you start asking, okay, if I do, if I go and I do an influencer event, I know it, what do I want to do first? I want to grow. That was easy for me. I knew the goal, the common goal is to grow. As long as I'm profitable, just head above water. I want to grow. I want to get more members because that's my engine. Okay, so that's my goal. Very easy. Grow. Now, every idea that I have, how do I define it as a strategy or just a tactic? Eventually you understand that you say, if you said it's a strategy because it's not an actual thing you're doing. So we said, all right, I want to get the best product in a box. That is not a tactic. This is just the idea that's a strategy. If I have the Best product in a box, I'll have, I'll have growth because people would stick around, they'll refer friends and so on. So company rule number one, strategy one is get the best products in a box. So if I do an influencer and brands event, they're all coming together now. More brands that I don't have relationship with will come in to meet the influencers. From there they build personal relationship with us and then from there we can have their product and I have more options to choose to create more product that would help me get better products smart. So that's, that's a tactic, right? So I would explain this then another one is get the best customer experience, get the best brands experience and then get the best influencers experience. Each one was a strategy. So every team, one is in marketing, one is in logistics. Every person that worked in a company understood what is the goal and how we're getting there. Now everyone can work. If there is no officer on site, they knew what to take, what action to take. And now you have 100 employees, for example. Then you have 100 brains that can think independently with great ideas that I'm not going to come up with. So we can pierce all these vectors, go very, very focused and you can pierce through any challenge. And that's when we started growing. Wow, that was a major change.

Joseph Martin (46:11)

I love that.

Yosef Martin (46:11)

You just give great directions. Very, very simple. Think of if you have all the Hebrews living Exodus in Egypt, you can drop in them the Bible. They don't even know how to read, but you can give them the ten commandments. So if you have some group, big group of people, make it very clear like a billboard what needs to get done so everyone understand, otherwise you've lost them. Then you go into specifics. Then you say, okay, now we're gonna go throughout years and years, we're gonna build kind of like textbooks for something more specific. But first everybody knows not to kill, not to, not to steal, not to. Now they're all behaving good, we can breathe a little bit. No more craziness. Now we can start perfecting ourselves. Now let's go and go and write the Bible and let's go deeper into rules. So that's the same in a company. That's how it should be.

Joseph Martin (46:57)

Loveless. A lot of people write their goals, but they don't get nitty gritty with the tactics and the strategies, you know, even the goals.

Yosef Martin (47:04)

I can say that most companies said company mission and never. I mean I'm not judging everything, just you ask every person what is the company mission? They wouldn't even know. Well, if you. If you have a mission that nobody remembers too long, make sure you find something that they can say and understand what the mission is at least. Right. I like. I like to see it as simple as possible. More simple than the four strategies I have to write because that's where it all starts. If you. If you look at the company that has a very long like a whole paragraph of a company mission, I bet you that you know I'll pick up any employee that you won't be able to answer.

Joseph Martin (47:46)

Yeah.

Yosef Martin (47:47)

So what's the purpose of that?

Joseph Martin (47:48)

Absolutely. Joseph, it's been fun, man. Where can people find you?

Yosef Martin (47:51)

Keep up with you and follow Yosef Martin. Yosef and then I'm on Instagram yfl Martin Cool.

Joseph Martin (47:59)

Keep a link below and we'll link the trading algo below.

Yosef Martin (48:02)

Awesome.

Joseph Martin (48:03)

Awesome. Thanks for watching guys. As always. See you next time.